On 24 August 2023, through Decree No. 11,666/2023, the Kigali Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer was enacted in Brazil (the “Amendment“). It was at MOP 28 (Meeting of the Parties) of the Montreal Protocol, in 2016, in the city of Kigali, Rwanda, that the Parties agreed to include HFCs among the substances controlled by the international regime. Hydrofluorocarbons (“HFCs“) have been used as alternatives to chlorofluorocarbons, mainly in the refrigerant market.
The Amendment, which had already been approved in the House and Senate, sets forth gradual reduction goals for the production and use of HFCs, establishing different targets for developed and developing countries. Pursuant to the Amendment, Brazil is now committed to not increasing its HFC use by 2024–considering a baseline calculated between 2020 and 2022–and incrementally reducing it by 80% by 2045. According to statements made by the Ministry of Foreign Affairs in the context of the procedure for enacting the Amendment, the timetable for the freeze and reduction is in line with what Brazil has been defending and discussing with private sector entities.
In order to achieve these goals, developing countries may have access to the financial mechanisms of the Multilateral Fund for the Implementation of the Montreal Protocol. For Brazil, this could mean an influx of resources estimated at USD 100 million; incentives that represent an opportunity to develop research and technology in Brazilian industries.
Naturally, the enactment of the Amendment, in addition to contributing to the achievement of the Brazilian Nationally Determined Contribution and the Brazilian National Policy on Climate Change, is also expected to impact industry sectors that rely on HFCs.